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Republika e Kosovës Republika Kosova – Republic of Kosovo

Qeveria – Vlada – Government

Ministria e Financave - Ministarstvo za Finansija - Ministry of Finance

Thesari i Kosovës – Trezor Kosova - Treasury of Kosova

QUARTELY DATA ON TOTAL DEBT

Second Quarter 2016

Debt Management Division

July 2016

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Content

Abbreviations ............................................................................................................................................ 3

INTRODUCTION ......................................................................................................................................... 4

1. TOTAL DEBT ....................................................................................................................................... 5

Total Debt Stock ........................................................................................................................................ 5

Total Debt trend ........................................................................................................................................ 5

Debt portfolio by currency ........................................................................................................................ 6

Debt portfolio by interest type ................................................................................................................. 6

Debt portfolio by currency and interest type – Q2 2016 .......................................................................... 6

2. INTERNATIONAL DEBT ...................................................................................................................... 7

International Debt Stock ........................................................................................................................... 7

International Debt by creditors ................................................................................................................ 7

Withdrawals by creditors .......................................................................................................................... 7

International Debt Service by creditors .................................................................................................... 8

Composition of International Debt by creditors – Q2 2016 ..................................................................... 8

Composition of International Debt by currency and interest – Q2 2016 ................................................. 9

International Loan Agreements – Q2 2016 ............................................................................................... 9

3. DOMESTIC DEBT .............................................................................................................................. 10

Domestic Debt Stock ............................................................................................................................... 10

Government Securities Issued – Q2 2016 ............................................................................................... 10

Domestic Debt by instruments ............................................................................................................... 11

Domestic Debt by Holders – Q2 2016 ..................................................................................................... 11

Domestic Debt Service ............................................................................................................................ 11

4. STATE GUARANTEES........................................................................................................................ 12

5. RISK INDICATORS ............................................................................................................................ 12

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Abbreviations

CBK Central Bank of Kosovo

DIFK Deposit Insurance Fund of Kosovo

EBRD European Bank for Reconstruction and Development

EIB European Investment Bank

GDP Gross Domestic Product

GS Government Securities

IBRD International Bank for Reconstruction and Development

IDA International Development Association

IMF International Monetary Fund

Imp. BO Project Implementing Budget Organization

KfW German Agency for Reconstruction

MDE Ministry of Economic Development

MEST Ministry of Education, Science and Technology

Q Quarter(ly)

R Revised Data

SDR Special Drawing Rights

UniCredit UniCredit Bank in Austria

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INTRODUCTION

Pursuant to Law on Public Debt no. 03/L-175 and Regulation GRK - no. 22/2013 on Procedures

for Issuance and Management of State Debt, State Guarantees and Municipal Debt, the

Treasury publishes the report Quarterly Data on Total Debt. The Law on Public Debt defines the

Total Debt as a total of State Debt and Municipal Debt. State Debt may be direct debt or on-

lend debt1. Whereas regarding whose jurisdiction is subject to, Total Debt may be International

Debt, and Domestic Debt. Domestic Debt is subject to the local jurisdiction, while International

Debt is subject to the laws of a legal jurisdiction other than the Republic of Kosovo.

Report is composed of five parts, the first part includes data on the Total Debt, the second part

present data on International Debt, and the third part presents data on Domestic Debt, in the

fourth part are presented data on State Guarantees, and in the last part are presented risk

indicators.

1 Debt which is contracted by Government, but it has the right with a tripartite agreement to on-lend to a public sector entity.

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1. TOTAL DEBT

Total Debt Stock

2012 2013 2014 2015 Q1 2016 Q2 2016

International Debt 336.60 323.76 326.35 371.17 389.47 383.58

Central Level 336.46 321.73 316.54 339.87 354.20 345.63

On-Lending 0.14 2.03 9.81 31.30 35.27 37.95

Municipalities 0.00 0.00 0.00 0.00 0.00 0.00

Domestic Debt 73.31 152.51 256.52 377.78 409.71 438.34

Central Level 73.31 152.51 256.52 377.78 409.71 438.34

Municipalities 0.00 0.00 0.00 0.00 0.00 0.00

Total Debt 409.92 476.27 582.87 748.95 799.18 821.93

State Guarantees 0.00 0.00 10.00 10.00 10.00 10.00

Total Debt (% of GDP) 8.44% 9.10% 10.63% 12.98% 13.40% 13.78% Notes: International Debt also changes over the years and quarters as a result of exchange rate fluctuations. Amounts are in million EUR.

Total Debt trend

0%

2%

4%

6%

8%

10%

12%

14%

16%

0.00

100.00

200.00

300.00

400.00

500.00

600.00

700.00

800.00

900.00

2012 2013 2014 2015 Q1 2016 Q2 2016

(% o

f G

DP

)

Mill

ion

EU

R

Total Debt Total Debt (% of GDP)

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Debt portfolio by currency

2012 2013 2014 2015 Q1 2016 Q2 2016

Total Debt 409.92 476.27 582.87 748.95 799.18 821.93

EUR 333.88 402.34 506.15 650.92 688.49 716.58

SDR* 76.04 73.93 76.73 98.03 110.70 105.35

International Debt 336.60 323.76 326.35 371.17 389.47 383.58

EUR 260.57 249.83 249.63 273.14 278.77 278.24

SDR* 76.04 73.93 76.73 98.03 110.70 105.35

Domestic Debt 73.31 152.51 256.52 377.78 409.71 438.34

EUR 73.31 152.51 256.52 377.78 409.71 438.34 Notes: Amounts are in million EUR. *It is net value exposed, which means the amount exposed excluding Euro component.

Debt portfolio by interest type

2012 2013 2014 2015 Q1 2016 Q2 2016

Total Debt 409.92 476.27 582.87 748.95 799.18 821.93

Fix 296.86 370.54 481.14 621.21 652.32 684.71

Variable 113.05 105.73 101.73 127.74 146.86 137.22

International Debt 336.60 323.76 326.35 371.17 389.47 383.58

Fix 223.55 218.03 224.62 243.43 242.60 246.37

Variable 113.05 105.73 101.73 127.74 146.86 137.22

Domestic Debt 73.31 152.51 256.52 377.78 409.71 438.34

Fix 73.31 152.51 256.52 377.78 409.71 438.34

Note: Amounts are in million EUR.

Debt portfolio by currency and interest type – Q2 2016

87%

13%

EUR SDR

83%

17%

Fix Variable

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2. INTERNATIONAL DEBT

International Debt Stock

2012 2013 2014 2015 Q1 2016 Q2 2016

International Debt 336.60 323.76 326.35 371.17 389.47 383.58

Central Government 336.46 321.73 316.54 339.87 354.20 345.63

On-lent Debt 0.14 2.03 9.81 31.30 35.27 37.95

International Debt (% of GDP) 6.93% 6.17% 5.85% 6.35% 6.45% 6.35%

Note: Amounts are in million EUR.

International Debt by creditors

Creditor 2012 2013 2014 2015 Q1 2016 Q2 2016

IBRD 215.00 203.66 192.33 180.99 175.32 175.32

IDA 8.41 12.37 20.84 28.86 29.97 31.07

IMF 113.05 105.73 101.73 127.74 146.86 137.22

UniCredit - - 2.00 2.96 2.96 2.96

KfW 0.14 2.00 9.46 30.62 34.36 37.02

Total 336.60 323.76 326.35 371.17 389.47 383.58

Note: Amounts are in million EUR.

Withdrawals by creditors

Creditor 2012 2013 2014 2015 Q1 2016 Q2 2016

IDA 3.51 4.42 7.37 6.53 1.94 0.55

IMF 93.64 0 0 35.64 35.62 0

UniCredit 0 0 2.00 0.96 0 0

KfW 0.08 1.86 7.46 22.49 3.74 4.99

Total 97.23 6.28 16.83 65.62 41.30 5.54

Note: Amounts are in million EUR.

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International Debt Service by creditors

Creditor Debt Service 2012 2013 2014 2015 Q1 2016 Q2 2016

IBRD Principal 11.34 11.34 11.34 11.34 5.67 0

Interest 8.14 8.94 8.46 7.98 3.81 0

IDA Principal 0 0 0 0 0 0

Interest 0.03 0.07 0.1 0.19 0.05 0.07

IMF Principal 0 2.7 10.7 16.21 12.34 12.21

Interest 0.90 1.10 1.10 1.41 0.46 0.39

UniCredit Principal 0 0 0 0 0 0

Interest 0 0 0.07 0.02 0.01 0.01

KfW Principal 0 0 0 1.33 0 2.33

Interest 0.35 0.13 0.54 0.91 0 0.77

Total 20.76 24.28 32.37 39.38 22.34 15.78

Note: Amounts are in million EUR.

Composition of International Debt by creditors – Q2 2016

46%36%

8% 9%

1%

IBRD IMF IDA KfW UniCredit

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Composition of International Debt by currency and interest – Q2 2016

International Loan Agreements – Q2 2016

Loan Creditor Imp. BO

Direct Loan/ On-lent Loan

Agreement Date

Agreement Currency

Agreement Amount

Amount in Euro*

Status

Education System Imporovement Project

IDA MEST Direct Loan 20.11.2015 SDR 7.90 10.20 Ratified

Kosovo Railway Route 10 Rehabilitation Project

EBRD MDE-INFRAKOS

On-lent Loan

04.09.2015 EUR 39.90 39.90 Ratified

Note: Amounts are in million.

*According to exchange date of the Agreement date.

27%

73%

SDR EUR

64%

36%

Fix Variable

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3. DOMESTIC DEBT

Domestic Debt Stock

Domestic Debt (net) 2012 2013 2014 2015 Q1 2016 Q2 2016

New Issuances 73.31 79.20 104.01 25.53 31.93 28.63

Debt Stock 73.31 152.51 256.52 377.78 409.71 438.34

Domestic Debt (% of GDP)

1.51% 2.91% 4.59% 6.46% 6.78% 7.26%

Note: Amounts are in million EUR

Government Securities Issued – Q2 2016

Auction Instrument Auction

Date Maturity

Date

Weighted average yield (%)

Coupon Rate (%)

Amount Issued

Nominal Net

KV007-16 3 month 12.04.16 13.07.16 0.22% - 10.00 9.99

KV008-16 6 month 19.04.16 19.10.16 0.32% - 30.00 29.95

KV009-16 12 month 17.05.16 17.05.17 0.41% - 30.00 29.87

KV010-16 12 month 14.06.16 14.06.17 0.37% - 30.00 29.89

KV011-16 2 year 29.06.16 30.06.18 0.76% 0.70% 30.00 29.96

Notes: Rates are annually

Amounts are in million EUR.

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Domestic Debt by instruments

Note: Securities - nominal value

Domestic Debt by Holders – Q2 2016

Domestic Debt Service

Domestic Debt 2012 2013 2014 2015 Q1 2016 Q2 2016

Interest Payments 0.66 1.19 2.50 5.50 2.27 2.28

Principal Payments 0 0 0 0 0 0

Interest/Total Revenues (%) 0.05 0.09 0.17 0.36 0.14 0.14

Note: Amounts are in million EUR

-

20.00

40.00

60.00

80.00

100.00

120.00

140.00

160.00

180.00

2012 2013 2014 2015 Q1 2016 Q2 2016

3 month

6 month

12 month

2 year

3 year

5 year

48%25%

18%

5% 4%

Banks Pension Funds Public Instit. Insurance Comp. Others

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4. STATE GUARANTEES

2014 2015 Q1 2016 Q2 2016

State Guarantees 10.00 10.00 10.00 10.00

EBRD Guarantee for Credit Line to DIFK

10.00 10.00 10.00 10.00

State Guarantees (% of GDP) 0.18% 0.17% 0.17% 0.17%

Note: Amounts are in million EUR

5. RISK INDICATORS

2012 2013 2014 2015 Q1 2016 Q2 2016

Total Debt/GDP 8.44% 9.10% 10.63% 12.98% 13.40% 13.78%

International Debt 6.93% 6.17% 5.85% 6.35% 6.45% 6.35%

Domestic Debt 1.51% 2.91% 4.59% 6.46% 6.78% 7.26%

Weighted Average Interest Rate 2.97% 2.62% 2.64% 2.58% 2.47% 2.29%

International Debt 3.21% 3.15% 3.20% 2.97% 2.85% 2.89%

Domestic Debt 1.89% 1.50% 1.92% 2.19% 2.10% 1.76%

Average Time to Maturity (years) 11.51 9.24 5.20* 4.76 4.60 4.62

International Debt (years) 14.00 13.42 7.79 7.52 7.20 7.33

Domestic Debt (months) 1.53 4.28 8.13 11.73 15.27 15.21

% Total Debt 100% 100% 100% 100% 100% 100%

International Debt 82.12% 67.98% 56.00% 49.55% 48.73% 46.67%

Domestic Debt 17.88% 32.02% 44.00% 50.44% 51.27% 53.33% Notes: Debt/GDP indicator also includes State Guarantees.

*Change in Methodology – Previous calculations have been done based on the date of the last installment. From

now on, the base for calculation will be actual cash flows of every installment.